Woodside concludes 2nd Pluto LNG train stake sale with GIP

Australian energy major Woodside has completed the sale of a 49 per cent non-operating participating interest in the second train at its Pluto LNG export facility to Global Infrastructure Partners (GIP).

On 15 November 2021, Woodside entered into a sale and purchase agreement with GIP. On 22 November 2021, the Pluto Train 2 Joint Venture announced its final investment decision. This took place at the same time as the final investment decision for the Scarborough development.

Pluto Train 2 is a key component of the Scarborough development. It includes a new LNG train and
domestic gas facilities that will join the existing Pluto LNG onshore facility.

The approximate capital expenditure for the development of Pluto Train 2 is $5.6 billion (100 per cent project).

The JV arrangements require GIP to fund its 49 per cent share of capital expenditure in addition to the construction capital of $822 million. Woodside’s capital expenditure will reduce accordingly.

The first LNG cargo from Pluto Train 2 is to come in 2026.

Woodside CEO Meg O’Neill said: “GIP brings established, global capabilities to the Pluto Train 2 Joint Venture which will support delivery of a world-class project. The development of Scarborough gas through Pluto Train 2 is expected to deliver significant value to our shareholders.”

Pluto LNG is an onshore LNG processing facility located near Karratha in Western Australia. The first cargo from the single-train facility was delivered in 2012.

Expansion of Pluto LNG will include the construction of Pluto Train 2, associated domestic gas processing facilities, supporting infrastructure, and modifications to Pluto Train 1 to allow it to process Scarborough gas.

Bechtel won the EPC contractor for Pluto Train 2 and integration into the existing Pluto LNG facilities. Moreover, Sembcorp Marine will assist Bechtel with the task of module assembly of Train 2. In addition, Baker Hughes will provide high-efficiency gas turbines and centrifugal compressors. 

The Pluto JV specifically includes Woodside Burrup (90 per cent), Kansai Electric Power Australia (5 per cent) and Tokyo Gas Pluto (5 per cent).

On the other hand, the Pluto Train 2 JV comprises Woodside Burrup Train 2 (51 per cent) and Global Infrastructure Partners (49 per cent).

Finally, the Scarborough JV comprises Woodside (73.5 per cent) and BHP Petroleum (Australia) (26.5 per cent).

Woodside is the operator of both Pluto LNG and the Pluto Train 2 Joint Venture.